Amazon announces a new mass layoff that affects another 9,000 employees

The snip in technology companies does not stop.

Oliver Thansan
Oliver Thansan
20 March 2023 Monday 09:37
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Amazon announces a new mass layoff that affects another 9,000 employees

The snip in technology companies does not stop. Amazon announced Monday the layoff of another 9,000 workers in the coming weeks, Andy Jassy, ​​chief executive, said in a memo sent to his employees on the board of directors.

This cut is in addition to the layoffs previously announced in November and which lasted until January. That first round affected 18,000 employees and impacted the retail business, device, and human resource groups sectors the most.

The large digital supermarket made this decision to extend the settlements due to the increase in costs in search of simplifying costs. It takes into account the situation of the economy, with the doubts that have arisen in the banking system. “There is uncertainty in the near future,” Jassy stressed.

“The overriding tenet of our 2023 annual planning was to be more efficient while doing so in a way that allows us to continue to invest heavily in key customer experience over the long term, which we believe can significantly improve the lives of customers. users and Amazon as a whole," he said.

This new round of layoffs tightens the siege in the areas of cloud computing, human resources, advertising and live streaming businesses on Twitch, the document specifies.

It will be the second largest wave of layoffs for the company founded by Jeff Bezos, after a giant wave of hiring due to increased demand during the pandemic lockdown. The workforce went from 798,000 employees at the end of 2019 to more than 1.6 million at the end of 2021.

Jassy is also conducting an in-depth review of the company's expenses in parallel with an economy slowing growth, affecting the company's core. Amazon also froze hiring in its corporate force, which has parked some experimental projects and the expansion in the implementation of warehouses.

Despite these circumstances, Jassy said he remains optimistic about the largest businesses, the retail sector and web services, while investment in new divisions continues.

This initiative is in tune with the trend of large American technology companies of massive layoffs in the hangover of the post-pandemic. Google presented the plan to terminate 12,000 workers, Microsoft 10,000, 7,000 in Salesforce or 21,000 in Meta, Facebook's parent company.